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Small Business Acquisitions

Working out of the northwest I came across a young business owner looking to acquire a business similar to his in a different state. While the discussion with this entrepreneur went on a few relevant points were brought forward. First, his business was engaging a fair amount of work eight or so hours from his headquarters. As a small services provider this distance was to far away for him to fully consume the profits available. Acquisition was a smart move for him.

The next point is that stuck out to me from our conversation is the approach he was taking. He new it would be too difficult to move to the location and start building from scratch. He would have to work excessively hard to obtain any market share, in a sense it would be just like starting a business all over again. This was something he was not capable of doing while continuing to run his business. However, he did have a strong manager who is capable of running a new branch. He saw a good opportunity to acquire a retiring man’s business and expand his market presence at the same time. This is why making an acquisition was a good fit for him.

During the next one or two decades there will be many opportunities such as this as the “baby boomers” generation continues to retire. There are many young entrepreneurs who are looking to build the American dream they learned from their parents. Some of them will pick up the business that their parents built, other will seek to build their own. This will leave the older generation with the need to find someone to take his or her place. At Deal Capital we understand the challenges of selling a business and making an acquisition. We are anxious to hear from you and how we can assist you in the next steps of your business pursuits, whether you are a buyer or a seller.

Troy Jenkins
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